Old Mutual Wealth Gets Wealthier In 2012

Sally Ling

4 March 2013

Old Mutual Wealth, which comprises Skandia and Old Mutual Global Investors, saw its assets grow by 10 per cent in 2012, to £69.2 billion (around $104 billion) at 31 December 2012. Assets on the UK platform increased by 20 per cent to £22.6 billion which resulted in the UK platform recording an operating profit of £2 million (IFRS adjusted) for the full year.

The IFRS adjusted operating profit for Old Mutual Wealth as a whole during 2012 was £195 million. Of this, £94 million of this profit was recorded by Skandia in the UK and £68 million from the Skandia International cross-border markets. The firm reports that the overall growth in assets over the year was driven by a positive net client cash flow of £2.0 billion (2011: £2.4 billion) and higher equity markets at the end of the period. At the same time, there has been a reduction of £1.1 billion in assets attributed to the sale of the Finnish branch of Skandia Life, which was completed during the year.

Old Mutual Wealth achieved gross sales of £11.9 billion during 2012 against £12.1 billion in 2011; the UK platform contributed £4.1 billion (2011: £4.9 billion).